Business | Aviation
Bahrain Air in talks with aircraft manufacturers to buy six jets
Bahrain Air is negotiating with two aircraft manufacturers to purchase six new jets, a move that will enable the company to add more services and expand its network within the region and beyond.
- By Habib ToumiBureau Chief
- Published: 23:56 May 9, 2008
Manama: Bahrain Air is negotiating with two aircraft manufacturers to purchase six new jets, a move that will enable the company to add more services and expand its network within the region and beyond, managing director Ebrahim Al Hamer said.
"The cost of the six aircraft is estimated at $270 million, which will be fin-anced through the establishment of a fund by the shareholders of Bahrain Air tailored to meet the operating needs of the company for modern aircraft from now until 2016," he said.
Offer
According to Al Hamer, the last bidder recently submitted its offer and the company is now assessing the offers received and will make the final decision by next month.
A fund is being established by the shareholders to primarily pay for the security deposits of the aircraft, while the balance, which will be due after sometimes, will be borrowed from the international banking system.
"For this purpose, we are currently talking to few banks that showed interest to come in as financiers or partners," he said, adding that the market response and the current economic buoyancy of the region augur well for the airline.
More from Aviation
More from Business
Business Editor's choice
-
‘Wrong Way' Krugman
The source of our economic malfunction lies with government-mandated bank regulations
-
Greek exit could make Eurozone stronger
Departure will show limits of bailouts and allow remaining members to act much more like a unit
-
UAE upholds values of free trade
Recently released statistics confirm an established fact, namely that of the UAE embracing the free trade principle in general and imports in particular
